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The corona crisis has hit the French car industry hard. Car sales in France have fallen by 89 percent, according to various media. Today, a rescue plan is likely to be released by President Emmanuel Macron. French car brands such as Peugeot, Citroen and Renault have been severely affected by the consequences of the corona crisis. About 400.000 French people work in the auto industry and about 500.000 French work in auto industry related companies.

"The market has collapsed at lightning speed," said Maxime Lemerle, an economist and researcher with credit insurer Euler Hermes. "The quarantine measures prevented people from leaving their homes. So no cars were bought, cars were not repaired, no more refueling and no more cars were rented. The entire sector has really been affected. ”

Earlier reports revealed that French Finance Minister (Bruno Le Maire) thinks Renault will not survive the crisis without state aid. Renault is owned by the French state and, if approved by the government, will receive 5 billion euros in state aid. Certain conditions are attached to this state aid. For example, Renault should focus more on electric cars. Despite the fact that they may receive state aid, Renault will soon have to make major cutbacks. It would be a cut of 2 billion euros for the next two years.

According to the media, President Emmanuel Macron today comes with a rescue plan and measures to save the car industry in France. According to Finance Minister Bruno Le Maire, the measures would include subsidies for the purchase of cleaner cars. There is also assistance for parts suppliers and small businesses.

"We want to stimulate the demand for rental cars," an insider told daily newspaper Le Parisien. "Individuals should be encouraged with premiums to exchange their car for a new one that is more environmentally friendly."

Also read: Taxi sector comes with its own protocol and does not wait for RIVM


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